In a recent tweet, Edo Farina, CEO of Alpha Lions Academy, highlighted a probable event related to the digital token XRP.
Farina’s tweet reads, “$XRP Supply Shock will liquidate 95% of Holders,” accompanied by a video where he discusses the potential consequences for XRP holders alongside another individual.
The content of this conversation emphasizes critical advice for investors, particularly those who have been holding XRP for a considerable period. The message serves as a warning and a strategic insight for holders navigating the cryptocurrency market.
The conversation in the video begins with the notion that when XRP reaches a price of $5 or $10, many holders may feel tempted to cash out their entire investment. This is seen as a critical mistake that could lead to substantial losses in the long run
Farina and his colleague stress that this common reaction—rooted in the desire to finally capitalize on long-held investments—could lead 95% of holders to miss out on the potential for even greater gains.
According to them, the psychological aspect of having held onto XRP for such an extended time often drives individuals to act impulsively when prices begin to rise. This reaction can prevent holders from fully benefiting from future price surges, especially those beyond $10.
One of the key arguments made in the video is that the previous all-time high for XRP, which was primarily driven by speculation and lacked substantial utility, is likely to be surpassed significantly in the next bull run.
The speakers said during the last bull run, XRP’s price was heavily suppressed due to the ongoing SEC (Securities and Exchange Commission) litigation. Now that XRP has legal clarity, they argue, its value will likely rise much higher in the coming market bull runs.
Another critical factor highlighted is the concept of an “XRP supply shock.” This refers to the limited availability of XRP for retail investors, which, according to Farina and his colleague, is already low. If holders choose to sell their entire stake when XRP reaches the $5 to $10 range, they could miss out on even greater price increases driven by this limited supply.
This supply shock could create a significant surge in demand, further driving up the price. As a result, cashing out too early may lead to regrets, as holders could be unable to re-enter the market at favorable prices.
Farina and his colleague conclude their discussion by reiterating the importance of strategic decision-making. They caution against impulsive actions that may stem from emotional responses to price fluctuations. Furthermore, they humorously mention that those who sell all their XRP holdings may be excluded from an “XRP Yachting Party”.
The central message from this video, supported by Farina’s tweet, is clear: XRP holders should exercise caution and avoid selling off their entire holdings during the early stages of price increases. Instead, they should consider the broader market dynamics and the potential for future growth.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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